The IMF report showed the primary deficit – total expenditure excluding interest payments – at 2.9% of GDP or Rs1.2 trillion for the current fiscal year. For the next fiscal year starting July, the IMF has projected the primary budget deficit at 0.4% of GDP or only Rs191 billion. “The Covid-19 shock will unfortunately reverse the decline in public debt in recent months on the back of authorities’ fiscal consolidation efforts,” said the report. Cumulatively, real GDP growth had been revised down by five percentage points for FY 2020-21, said the IMF. In this fiscal year, economic activity is expected to contract for the first time since 1952 as GDP growth may contract by 1.5%, it added.

Source: The Express Tribune April 18, 2020 04:07 UTC